Mortgage Servicer Saddled with $375,000 in Sanctions for Violating Rule 3002.1
In In re Gravel, ___BR___ (Bankr. D. Vt. Sept. 12, 2016, case no. 11-10112), the first reported decision of its kind under Bankruptcy Rule 3002.1, Bankruptcy Judge Colleen A. Brown, who is Vermont’s chief bankruptcy judge, imposed $375,000 in sanctions on a mortgage servicer for billing debtors for fees without first filing the required notices under Rule 3002.1(c), which are required to be filed in a Chapter 13 bankruptcy case, by the secured DOT lender, stating any changes in mortgage payment, during the Chapter 13 bankruptcy case. Judge Brown directed that the sanctions be paid to Vermont’s largest pro bono provider of legal services in bankruptcy cases. [as reported in 9/16/16 ABI Rochelle e-newsletter.